JBI Q2 Deep Dive: Commercial and International Recovery Balances Self-Storage Softness

August 11, 2025 at 09:46 AM EDT

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Self-storage and building solutions company Janus (NYSE: JBI) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, but sales fell by 8.2% year on year to $228.1 million. The company expects the full year’s revenue to be around $875 million, close to analysts’ estimates. Its non-GAAP profit of $0.20 per share was 40.4% above analysts’ consensus estimates.

Is now the time to buy JBI? Find out in our full research report (it’s free).

Janus (JBI) Q2 CY2025 Highlights:

Revenue: $228.1 million vs analyst estimates of $216.2 million (8.2% year-on-year decline, 5.5% beat)
Adjusted EPS: $0.20 vs analyst estimates of $0.14 (40.4% beat)
Adjusted EBITDA: $49 million vs analyst estimates of $42.68 million (21.5% margin, 14.8% beat)
The company reconfirmed its revenue guidance for the full year of $875 million at the midpoint
EBITDA guidance for the full year is $185 million at the midpoint, above analyst estimates of $179.6 million
Operating Margin: 15.8%, down from 20.8% in the same quarter last year
Market Capitalization: $1.36 billion

StockStory’s Take

Janus’ second quarter results were well received by the market, as the company delivered revenue and non-GAAP earnings above Wall Street expectations despite an 8.2% drop in sales year over year. Management attributed the performance to a rebound in commercial sales and international market recovery, which offset ongoing weakness in North American self-storage construction. CEO Ramey Jackson highlighted that, “the resiliency of our business model and our diversified product offerings have enabled us to weather these challenging macroeconomic conditions.” The quarter also saw progress in digital innovation and cost reduction initiatives, with the Noke Smart Entry System continuing to gain traction among customers.

Looking ahead, management reaffirmed its full-year guidance, emphasizing stabilization in the backlog and pipeline alongside expected improvement in commercial and international segments. CFO Anselm Wong pointed to anticipated margin recovery in the second half of the year, supported by ongoing cost actions and a more favorable blend of lower steel costs and disciplined capital allocation. Jackson noted, “We are confident in the long-term fundamentals of our business,” citing strong cash flow and readiness to capitalize on industry opportunities, particularly in the aging self-storage facility market.

Key Insights from Management’s Remarks

Janus’ latest quarter was shaped by mixed self-storage trends, improving international demand, and ongoing product innovation, with cost controls and acquisition benefits supporting profitability.

Self-storage new construction decline: Management noted a 14.8% year-over-year drop in self-storage revenue, mainly from lower new construction volumes as customers delayed projects amid economic uncertainty and high interest rates. The R3 (remodel, repair, replace) business also softened due to fewer big box retail conversions and expansions.
Commercial and international growth: The commercial sales channel rose 6.7% on the strength of rolling steel doors, carport and shed demand, and benefits from the TMC acquisition. International revenues jumped 58% as macroeconomic conditions improved in the U.K. and other markets, with margins recovering alongside volume.
Noke Smart Entry momentum: The Noke Smart Entry System reached 409,000 installed units, up 26.6% year over year. Management emphasized growing adoption among institutional customers, with the wired “Ion” product noted for its stability and cost advantages.
Cost reduction and margin management: Janus achieved $2.7 million in quarterly savings from a cost reduction program, aiming for $10-12 million in annual pretax savings by year-end. Lower volumes pressured margins, but cost actions and lower steel input costs are expected to support margin improvement in the back half.
Leadership and organizational updates: Jason Williams joined as President of Janus Core, bringing experience from technology-oriented industrial firms to oversee the self-storage and commercial business. Management believes this hire will help drive product development and operational execution.

Drivers of Future Performance

Looking forward, Janus’ guidance is driven by expectations of recovery in commercial and international segments, careful margin management, and continued share gains in the retrofit market.

Commercial and international segment momentum: Management expects continued recovery in commercial and international sales, citing demand normalization and operational improvements in overseas markets. The TMC acquisition and expanded product offerings are positioned to support further growth in non-self-storage channels.
Margin improvement levers: Margin recovery is expected from a combination of lower steel costs, ongoing cost reduction measures, and favorable pricing trends in commercial products. Wong stated that cost actions have reached full run rate, and additional efficiencies are anticipated to help restore margins to target levels.
Retrofit and replacement opportunity: Management highlighted the significant pipeline in the R3 retrofit and replacement market, with over 60% of U.S. self-storage facilities more than 20 years old. As customers shift capital to upgrades and renovations, Janus aims to capture share through its expanded suite of solutions and smart entry offerings. Potential tariff impacts remain a risk, but alternative sourcing and productivity measures are expected to offset much of the exposure.

Catalysts in Upcoming Quarters

In the coming quarters, our team will track (1) progress in commercial and international segment recovery, (2) execution on margin improvement through cost reductions and lower steel input costs, and (3) adoption rates of the Noke Smart Entry System across both small and institutional customers. Additionally, we will monitor the evolving retrofit opportunity and management’s ability to mitigate potential tariff impacts.

Janus currently trades at $10, up from $8.68 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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